News
Health Budget 06-07: Medibank Sold, Medical Research – At A Price |
| Spokesperson: | Shadow Minister for Health - Hon Julia Gillard |
| Date: | Wednesday, 10 May 2006 |
| Category: | National Health News |
| Last night’s Budget confirmed the sale of Australia’s biggest not for profit private health insurance fund, Medibank Private. But the Howard Government has kept secret all the information about the sale, including how it will be sold and the impact on fundholders. Confirmation of the sale was only disclosed in the Finance Minister’s Portfolio Budget Statements which tell us that his Department is budgeting over $20 million to manage the fire sale in this financial year. It is clear the Howard Government is prepared to sell Medibank Private off at any price. Medibank Private will be sold despite the markets having to digest at least two other major sales, Telstra and the Snowy Hydro. Medibank Private will be sold despite concerns about competition and that the sale will lead to higher private health insurance premiums. Even the Howard Government must know that private health insurers are failing to offer value for money products and the situation may get even worse after the sale of Medibank Private. Incredibly, the Budget allocates $49 million to a general marketing campaign for private health insurance which will be jointly funded with the private health insurance sector. When Australians are finding it hard to get a doctor when they need one and hospitals are under pressure, how can the Howard Government justify spending $49 million out of the health budget to pay for advertising for private businesses. In the Budget Speech last night the Treasurer spruiked additional funding for medical research but in the Budget Papers this additional funding appears to be conditional on the sale of Medibank Private. In the sections of Budget Paper No. 2 that describe the $500 million commitment over 4 years for health and medical research and the $170 million commitment over 9 years for research fellowships it states in relation to each commitment; “This commitment follows the Government’s announcement to sell Medibank Private Ltd.” If medical research is an investment that will bear fruit for technological and health advancements, and deliver dividends to our economy, it should not be linked to the sale of an asset, particularly when around 64 per cent of Australians are completely opposed to the sale. The Howard Government needs to explain whether delivering any of the new money for medical research is contingent on the sale of Medibank Private. |
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